Markets remain volatile as traders digest the Federal Reserve’s rate outlook and Trump’s expanding tariff plans. The dollar stabilizes after Trump’s latest tariff threats, while the euro hovers near $1.0440 ahead of ECB signals.
The yen strengthens as safe-haven demand rises, while gold edges higher amid inflation fears and policy uncertainty. Silver declines as industrial demand concerns resurface. With central bank policies and trade tensions in focus, upcoming PCE inflation data and Fed statements will be key drivers for market movement.
| Time | Cur. | Event | Forecast | Previous |
| 19:00 | USD | FOMC Statement | - | - |
| 19:00 | USD | FED Interest Rate Decision | 4.50% | 4.50% |
| 19:00 | USD | FOMC Press Conference | - | - |
EUR/USD trades around 1.0440, while the Dollar Index holds at 107.9 as investors await the Fed’s policy decision. The central bank is expected to keep rates unchanged, with a focus on Powell’s remarks and inflation outlook for rate cut signals.
Trump's call for immediate rate cuts adds pressure, while traders await Friday’s PCE inflation report. The dollar strengthened after Trump’s new tariff threats, with the first round against Mexico, Canada, and China set for February 1.
From a technical perspective, the first resistance level is at 1.0490, with further resistance levels at 1.0515 and 1.0550 if the price breaks above. On the downside, the initial support is at 1.0355, followed by additional support levels at 1.0270 and 1.0225.
| R1: 1.0490 | S1: 1.0355 |
| R2: 1.0515 | S2: 1.0270 |
| R3: 1.0550 | S3: 1.0225 |
The yen trades around 155.6 per dollar, slipping after Tuesday’s loss as investors await the Fed’s policy decision. The central bank is expected to hold rates steady despite Trump’s calls for immediate cuts.
Trump’s escalating tariff threats added pressure, while safe-haven demand linked to a low-cost Chinese AI model faded. BOJ minutes showed a cautious stance on policy adjustments, though January’s rate hike and inflation forecast revisions signal potential further increases.
The key resistance level appears to be 158.60, with a break above it potentially targeting 160.00 and 161.00. On the downside, 154.90 is the first major support, followed by 153.80 and 151.90 if the price moves lower.
| R1: 158.60 | S1: 154.90 |
| R2: 160.00 | S2: 153.80 |
| R3: 161.00 | S3: 151.90 |
Gold trades around $2,765 per ounce, extending its recovery as US tariff uncertainty increases safe-haven demand.
Trump announced tariffs on computer chips, pharmaceuticals, and steel, while the White House confirmed plans for Canada and Mexico tariffs on February 1, with China also under consideration.
Investors now await the Fed’s policy meeting, where rates are expected to remain unchanged. Higher rates typically weigh on gold, while markets also watch for the Fed’s response to Trump’s calls for rate cuts.
Technically, the first resistance level will be 2790 level. In case of this level’s breach, the next levels to watch would be 2800 and 2820 consequently. On the downside, 2730 will be the first support level. 2660 and 2630 are the next levels to monitor if the first support level is breached.
| R1: 2790 | S1: 2730 |
| R2: 2800 | S2: 2660 |
| R3: 2820 | S3: 2630 |
The British Pound fell to $1.244 from a three-week high after Trump’s tariff threats on semiconductors, pharmaceuticals, and steel fueled dollar strength. Markets focused on central bank policies, with the Fed expected to hold rates and the ECB likely to cut by 25bps. In the UK, the BoE is still expected to cut rates in February despite strong PMI data.
The first resistance level for the pair will be 1.2460. In the event of this level's breach, the next levels to watch would be 1.2500 and 1.2600. On the downside 1.2420 will be the first support level. 1.2350 and 1.2265 are the next levels to monitor if the first support level is breached.
| R1: 1.2460 | S1: 1.2420 |
| R2: 1.2500 | S2: 1.2350 |
| R3: 1.2600 | S3: 1.2265 |
Silver fell to $30 per ounce on Wednesday, extending losses as the dollar rebounded amid Trump’s escalating tariff threats. Trump announced tariffs on chips, pharmaceuticals, steel, aluminum, and copper to boost domestic production. Traders remained cautious ahead of the February 1 tariff deadline for China, Mexico, and Canada.
Meanwhile, the Fed is expected to keep rates unchanged this week. In China, overcapacity in the solar panel industry led firms to adopt a government-led self-discipline program, potentially limiting silver demand.
Technically, the first resistance level will be 31.00 level. In case of this level’s breach, the next levels to watch would be 31.80 and 32.50 consequently. On the downside 29.85 will be the first support level. 28.80 and 28.50 are the next levels to monitor if the first support level is breached.
| R1: 31.00 | S1: 29.85 |
| R2: 31.80 | S2: 28.80 |
| R3: 32.50 | S3: 28.50 |
EUR/USD edged higher but remained constrained by USD strength, with the Fed maintaining a hawkish stance while the ECB prepared for a rate cut.
Detail
Fed Holds Interest Rates Steady, Signals Caution on Future CutsThe U.S. Federal Reserve left its benchmark interest rate unchanged at 4.25% - 4.50% during its first policy meeting of 2025, following a total of 100 basis points in rate cuts during the last quarter of 2024.
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